All Pakistan Textile Mills Association is saying it is worried about a declining trend in exports of the textile industry and that the industry is fast becoming a "history since the government has turned its back" on it. "The association has blowing the whistle constantly over decline in the textile industry exports but the government has done little to arrest the trend," he added.
"Latest export data from the Federal Board of Statistics has revealed that textile exports have registered a decline of six percent in value terms in May 2015 against the corresponding period. In quantity terms, exports of cotton cloth, towel and art, silk and synthetic textile have also lost their positions against the corresponding period."
He said textile and clothing exports were stagnant since 2006 against regional competitors, doubling their exports. "High cost of doing business and absence of conducive environment has impaired a 30-percent production capacity resulting into loss of textile exports worth $3325 million. Issues like gas and electricity supply cuts, energy affordability, incidentals of taxation and over-valued Pak rupee have hampered growth and textile industry has been left behind technologically in the region."
He has urged the government to ensure zero rating of export-oriented textile industry for all incidentals including taxes, duties, surcharges, levies and cess by extending drawbacks receipts realised by the State Bank of Pakistan at five percent on yarn, 10 percent on fabrics and 15 percent on made-ups and garments and to provide support of long-term finance facility for replacement of old machines in textile mills.
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